Global - Infrastructure - Fixed Networks - Submarine 2003-2005

Synopsis

Archived report. This report was archived in 2005 and had not been updated. Most international telecommunications is carried by submarine cable. Until about 2001, the number of these cables was growing very quickly, generating surplus capacity in the expectation of a boom in broadband. In turn, this resulted in falling revenues. The industry downturn in 2001 and the slow worldwide adoption of broadband made the situation much worse, and cable installation almost stopped. Some cable companies failed, and others were bought out at a fraction of their setup cost. In 2004, the industry started to revive and, by 2005, some major systems were again being constructed. This report discusses some of the major submarine systems and industry trends.

Table of Contents

• 1. Synopsis
• 2. Fibre optic undersea systems
• 3. Light at the end of the tunnel
  • 3.1 2006 – proposed Australia/North America cable
  • 3.2 Signs of expansion in 2005
  • 3.3 Submarine cable boom/bust cycle starting up again - analysis
  • 3.4 KMI forecast - 2004
  • 3.5 Tyco Telecommunications – 2004
  • 3.6 Bandwidth Revenues Stabilising – 2004
    • 3.6.1 Backbone prices
    • 3.6.2 Internet backbone growth
    • 3.6.3 Global VoIP Traffic Slowing
  • 3.7 TeleGeography reports from 2003
    • 3.7.1 Submarine Cable construction boom finally over
  • 3.8 Looming financial problems
• 4. Related reports

• Table 1 - Planned submarine routes (contracts yet to be awarded) – June 2005
• Table 2 – Median OC-3 and STM-1 Annual Lease Prices – 2000 - 2003
• Table 3 – International call cost comparisons – February 2004
• Table 4 – Construction Cost of Submarine Cables – 1998 - 2003